How to lead a charity into 2025

Charity leaders have faced a myriad of challenges over the last few years, amid a global pandemic, a cost-of-living crisis, recruitment difficulties, and much more. Leading an organisation through turbulent times is no mean feat, but the stakes for charity leaders are higher, with demand for services rising and the volume of incoming funds becoming uncertain. 

The role of charity leaders in shaping the direction of a charity is more important than ever. Charity leaders must be accountable, knowledgeable, and understanding. Awareness of the unique challenges their teams are facing means that leaders can factor these into their strategy, ensuring they are adaptable when new difficulties arise. Board management software providers Convene point out: “It is not necessary to know every single employee, but knowing that in certain months it is easier to raise money than others is crucial for a successful non-profit.” 

Leaders must be familiar with all areas of the organisation, from volunteers to the board of trustees. They should work closely with a diverse board to achieve the ultimate aims of the charity – a diverse board is better able to find solutions to issues facing the organisation, bringing together a breadth of expertise from different experiences and backgrounds.  

It is important to acknowledge that there will always be difficulties that charities must face, even without external pressures such as financial crises and sociopolitical circumstances. Good leadership only means that charities can navigate these circumstances successfully, overcoming them so they not only survive, but thrive in the future. 

In this article, we will explore more about the specific challenges charities are facing in 2025 and beyond, and crucially, how leaders can tackle them more effectively using digital technology, with more insight from experts Convene.  

Leadership tips from Convene

What challenges are charity leaders facing today? 

Cybersecurity 

Cybersecurity should be a priority for all charity leaders, alongside other areas such as fundraising and service delivery. Good cybersecurity underpins those activities, ensuring they can go on uninterrupted and that sensitive charity data is protected in compliance with data protection regulations.  

Charities are a tempting prospect for cyber criminals who look to exploit any vulnerabilities in order to access sensitive data or funds. Cyber attacks don’t even have to be targeted specifically at charities in order for them to suffer one – cyber criminals don’t care about who they are targeting, but rather what they can gain. The 2024 Cyber Breaches report, released by the Department for Digital, Culture, Media, and Sport, revealed that one in five charities who identified a cyber threat in the last twelve months experienced it at least once a week. 

Furthermore, the advent of artificial intelligence is likely to have an impact on the number and growing sophistication of cyber threats, even while the technology may also offer solutions to combat it.  

With cyber security threats evolving all the time, it is important that charity leaders prioritise cybersecurity as an ethical and legal responsibility. Leaders must be able to ask the right questions about how their funds and data are being protected online.  

“As more of the nonprofit world turns to and remains online, organisations need to be on top of their cybersecurity in order to achieve good governance,” advises Convene.

Charity leaders can lead by example with their own use of technology, sharing documents securely using a board management portal and assigning limits to who can view, forward, and export specific meeting agenda items, for example.  “While running a charity is a collaborative effort, not everyone can have the same level of clearance,” Convene concludes. “...With these granular access controls, charities are able to feel confident that their documents are protected.” 

ESG 

Environmental, Social, and Governance (ESG) is becoming increasingly important to charities, as it is in other sectors, due to increased scrutiny from the public on matters such as the climate crisis and racial and gender inequality.  

Charities are already under scrutiny as organisations that exist for the public benefit. Philanthropic impact is one of the most researched elements of a charity’s operations, with audiences wanting know that the charity they support is acting in their best interests.  

Indeed, research from the Charity Commission revealed that there is a “stubbornly persistent scepticism regarding how charities use their money and how they behave”, despite otherwise high levels of public trust.  

Charity leaders must therefore ensure that ESG factors into their discussions and decision-making. They must lead by example in order to ensure that the entire organisation understands the relevance of ESG and its importance to charity stakeholders, from beneficiaries and donors to trustees and grant funders.  

Convene says: “This growing focus on ESG means that it’s important to feel prepared for what this changing landscape can bring in the future. While ESG reporting is not currently mandatory, organisations should be aware of the regulatory environment for the sector. 

“A charity’s approach to ESG will reinforce their effectiveness, leadership and decision-making, all crucial aspects of governance.” 

Future-proofing 

The role of charity leaders is, at its core, to ensure that charities are sustainable and can continue to deliver their services for as long as they are needed. This means not just fighting fires, but thinking about the long-term strategy of the organisation.  

For leaders, this also means managing any potential risks to the organisation and taking steps to mitigate them. For example, while fundraising income may be high now, it may dwindle in time as a result of difficult financial circumstances for donors, rising costs for charities themselves, or poor donor retention. It is vital therefore that charity leaders think about the long-term sustainability of the organisation and how they can diversify income streams to ensure they are not overly reliant on one source. 

Making these decisions requires looking at data from across the entire organisation and being able to discuss it productively as a leadership team. “To ensure Boards are successful in the long term they need to be not only sufficient in preparation, but also in analysing and adapting to surfacing trends,” explains Convene. Better communications, actionable insights, and improved information sharing can go a long way to helping charity leaders navigate the year ahead.